PHOENIX — In a significant move to alleviate financial burdens, Arizona Governor Katie Hobbs announced on March 6, 2024, that over 352,000 residents will benefit from the erasure of $429 million in medical debt. This initiative, developed in partnership with the national nonprofit Undue Medical Debt, aims to provide relief to individuals struggling with overwhelming medical expenses.
Last year, Hobbs revealed plans to utilize funds from the American Rescue Plan Act to enable Undue Medical Debt to purchase medical debts from healthcare providers and subsequently cancel those debts. The initiative is part of a broader strategy aimed at eliminating approximately $2 billion in medical debt over a two-year period.
Automatic Relief for Eligible Residents
The initiative is designed to be automatic, meaning eligible individuals will not need to apply for assistance. Arizonans who earn up to four times the Federal Poverty Level or those with medical bills exceeding 5% of their annual income will qualify for debt relief. Beneficiaries will receive notification letters from Undue Medical Debt, informing them of the cancellation of some or all of their medical debt. Many individuals have already begun receiving these letters, with additional notifications expected in the coming weeks.
Governor Hobbs emphasized the importance of this program, stating, “We’ve taken bold action to free Arizonans across the state from crushing medical debt. Medical debt deprives our fellow Arizonans of their basic dignity, prevents our families and neighbors from living happy and productive lives, and endangers the Arizona Promise.”
Commitment to Community Health
The CEO of Undue Medical Debt, Allison Sesso, expressed gratitude for the collaboration with Arizona’s healthcare providers. “This investment demonstrates Arizona’s commitment to ensuring that no one should face financial ruin for seeking care,” Sesso noted. “We’re grateful to work with providers across the state who recognize that removing these unpayable debts of necessity helps their communities thrive.”
The announcement was made exclusively on 12News, underscoring the state’s commitment to transparency and timely communication with residents regarding this critical financial relief effort.
As this initiative progresses, it is expected to significantly impact the lives of many Arizonans, allowing them to pursue necessary medical care without the burden of insurmountable debt. The state’s proactive approach highlights a growing recognition of the need for financial support in healthcare, addressing a pressing issue that affects countless individuals across the nation.
